The Following Data Are Available from a Company for a Long-Term

question 84

Essay

The following data are available from a company for a long-term construction contract: $\begin{array}{|l|l|l|l|}\hline & 2006 & 2007 & 2008 \\\hline \text { Construction costs incurred to date } & \$ 400,000 & \$ 1,600,000 & \$ 1,900,000 \\\hline \text { Estimated costs to completion } & 1,400,000 & 450,000 & \\\hline\end{array}$ The contract price for the three-year contract was $2,100,000 and the estimated cost at the beginning of the contract was $1,800,000.
(a) What is the amount of income that will be reported under the percentage-of-completion method in 2006?
$
(b) What is the amount of income that will be reported under the percentage-of-completion contract method for 2007?
$
(c) What is the amount of income that will be reported under the percentage-of-completion contract method for 2008?
$

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